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A federal court in Florida enforced an arbitration agreement naming the National Arbitration Forum (FORUM) as an arbitration administrator over the objection of a plaintiff who alleged the FORUM was biased.
In Brockie v. American General Financial Services, Inc., No. 07-60755-CIV, 2007 WL 3379757 (S.D. Fla. Nov. 14, 2007), Kristie Brockie filed suit against American General Financial Services (AGFS) alleging a violation of the Fair Credit Billing Act. AGFS moved to compel arbitration based on an arbitration agreement, naming the FORUM as the arbitration provider in the credit account agreement between the parties.
The Court held that the language of the arbitration agreement indicated the parties intended to arbitrate disputes.
Further, the Court rejected Brockie's argument that the FORUM is biased against consumers, rendering the arbitration agreement unconscionable. The Court held that it is inappropriate to challenge the partiality of the arbitrator before they have been selected. Moreover, "the [FORUM] does not itself arbitrate the dispute – it only provides the forum and procedural rules." (internal citations omitted).
Finally, the Court also rejected Brockie's argument that the language indicated both parties had to agree to arbitrate a claim. Rather, the language indicated that either party may demand arbitration. Thus, AGFS's motion to compel arbitration was granted.
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